- After logging one of the worst performances in history, bonds are making a comeback, analysts say.
- Rising yields and stabilizing inflation are positives for bonds, they say.
- In contrast, higher rates and possible recession will hurt corporate earnings and stocks.
While many wonder whether the stock market has seen its lows this year, there’s a rebound happening in the bond market that people might be missing, analysts say.
Bonds usually rise when stocks fall, which is why they’re often used as a counterbalance to stocks in a portfolio. That didn’t happen this year amid soaring inflation and uncertainty over interest rates and the economy.